Question

Blanche took out a loan of $50,000 to start her floral gift shop. As the months ticked by, she found that she was having trouble repaying her loan while also meeting the payroll of her employees. If her business fails, what is the likely reason?

(1 point)
Responses

customer focus

customer focus

inexperience

inexperience

cashflow

cashflow

rapid growth

Answer 1

If Blanche's business fails while she is struggling to repay her loan and meet payroll, the most likely reason would be **cashflow**. Cashflow issues typically arise when a business is not generating enough revenue to cover its operating expenses and debt obligations, which can lead to financial difficulties.